Minsk, November 16, 2004—The International
Finance Corporation, the private sector arm of the World Bank Group, released
the results of a joint IFC-World Bank survey of Belarusian enterprises
“Business Environment in Belarus” at a roundtable attended by high level
The survey, polled owners and top managers of 600 enterprises in six regions
of Belarus and the capital city of Minsk on a number of issues that define
the business enabling environment in Belarus, such as business registration,
permits, licensing, certification and government inspections of businesses.
The survey reflects the perceptions of Belarusian entrepreneurs of the
business environment in 2003. According to entrepreneurs some of the key
constraints to their efficient operations include the following:
registration is a time consuming and costly process. It takes an average
of 62 days and $270 (about 25% of the country’s GNI per capita) to register
a business in Belarus. The registration fee doubled in 2003 compared to
the previous year.
- The overwhelming
majority of the respondents noted that licensing procedures in 2003 worsened.
It took an average company 39 days and $260 to obtain a license.
- On average
it takes 315 days and $2,695 (equivalent to double the country’s GNI per
capita) to complete certification procedures and 85 days and $555 to receive
approvals from boards of health for enterprises dealing with food.
- An average
Belarusian company has to undergo 12 inspections by government authorities,
lasting an average of 60 days.
Belarusian government officials attended the roundtable at which IFC and
World Bank released the results of the survey. Drawing on the results of
the survey the roundtable discussion focused on the the steps the government
needs to take to improve the business environment in the country. The government
invited IFC to develop recommendations and provide assistance in improving
the business enabling environment. Andrey Tur, Deputy Belarusian
Minister of Economy commented, “as the Belarusian government shares IFC’s
and World Bank’s assessment of the bottlenecks in the development of SMEs,
we would like to invite IFC to jointly resolve the issue administrative
barriers in Belarus.”
“IFC has been working in Belarus for more than ten years and we
know the environment in the country. At the same time IFC has been working
with governments of other CIS countries on improving the business enabling
environment for SMEs. Drawing on our experience, we look forward to working
with the government of Belarus to create conditions for the private sector
growth,” said Ivan Ivanov, IFC Project Manager in Belarus.
The International Finance Corporation (www.ifc.org)
is a member of the World Bank Group. IFC’s mission is to promote sustainable
private sector investment in transition economies, helping to reduce poverty
and improve people's lives. IFC finances private sector investments in
the emerging markets, mobilizes capital in the international financial
markets, helps clients improve social and environmental sustainability,
and provides technical assistance and advice to governments and businesses.
From its founding in 1956 through FY04, IFC has committed more than $44
billion of its own funds and arranged $23 billion in syndications for 3,143
companies in 140 developing countries. IFC’s worldwide committed portfolio
as of FY04 was $17.9 billion for its own account and $5.5 billion held
for participants in loan syndications.